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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
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Archer Daniels Midland (ADM - Free Report) closed at $97.50 in the latest trading session, marking a +1.09% move from the prior day. This move lagged the S&P 500's daily gain of 3.1%. Meanwhile, the Dow gained 2.18%, and the Nasdaq, a tech-heavy index, added 0.21%.
Prior to today's trading, shares of the agribusiness giant had lost 1.11% over the past month. This has lagged the Consumer Staples sector's gain of 4.19% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. In that report, analysts expect Archer Daniels Midland to post earnings of $1.55 per share. This would mark year-over-year growth of 3.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.43 billion, up 14.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.40 per share and revenue of $101.63 billion. These totals would mark changes of +42.58% and +19.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.71% higher within the past month. Archer Daniels Midland currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 13.03. Its industry sports an average Forward P/E of 19.26, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.
Also, we should mention that ADM has a PEG ratio of 1.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Agriculture - Operations was holding an average PEG ratio of 2.86 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Archer Daniels Midland (ADM) Gains But Lags Market: What You Should Know
Archer Daniels Midland (ADM - Free Report) closed at $97.50 in the latest trading session, marking a +1.09% move from the prior day. This move lagged the S&P 500's daily gain of 3.1%. Meanwhile, the Dow gained 2.18%, and the Nasdaq, a tech-heavy index, added 0.21%.
Prior to today's trading, shares of the agribusiness giant had lost 1.11% over the past month. This has lagged the Consumer Staples sector's gain of 4.19% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Archer Daniels Midland as it approaches its next earnings release. In that report, analysts expect Archer Daniels Midland to post earnings of $1.55 per share. This would mark year-over-year growth of 3.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.43 billion, up 14.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.40 per share and revenue of $101.63 billion. These totals would mark changes of +42.58% and +19.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Archer Daniels Midland. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.71% higher within the past month. Archer Daniels Midland currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Archer Daniels Midland is holding a Forward P/E ratio of 13.03. Its industry sports an average Forward P/E of 19.26, so we one might conclude that Archer Daniels Midland is trading at a discount comparatively.
Also, we should mention that ADM has a PEG ratio of 1.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Agriculture - Operations was holding an average PEG ratio of 2.86 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.